Hire Purchase Finance
A Hire purchase agreement is a way to buy assets and keep your capital as cash. The finance is secured on the asset or product whether it is a car or something larger and it gives you ownership of the asset once you have paid the cost in full. A hire purchase agreement is an affordable way to buy an asset as instead of paying the full amount upfront you pay fixed payments over an agreed period of time. Smaller payments over a longer period of time can make the hire purchase agreement more affordable however can incur more interest. A hire purchase agreement can also be tax efficient as capital allowances can be claimed immediately and interest is also tax deductible, for business hire purchase agreements VAT can also be reclaimed in full at the outset of the cost.
At Caledonia Asset Finance we have the expertise to help you select the right hire purchase option for you, so you can afford what you need. We offer both personal and commercial hire purchase options
Frequently asked questions about Hire Purchase Finance
Do I need to pay a deposit for a Hire purchase agreement?
It depends on the agreement; sometimes this is not required, however paying a deposit can reduce the total amount you borrow for the hire purchase agreement, so can help reduce the final cost following any interest.
With a hire purchase do I own the asset?
With a hire purchase agreement you own the asset once you have made full payment.
Who is responsible for the maintenance of the asset under the hire purchase agreement?
Although you are effectively hiring the asset until the full payment has been made, you are responsible for any servicing and or maintenance costs out with the original agreement.
What assets are available under a hire purchase agreement?
We offer personal hire purchase agreements for assets such as cars and for leisure purchases as well as business hire purchase options. Including agricultural and construction equipment/assets.
Can I sell the asset in a hire purchase agreement before the end of the agreement?
Depending on the agreement, you will not be allowed to sell or dispose of the asset without the lender's permission. You can request to settle the agreement early, however early settlement charges may be applied.